Who doesn’t want to save on taxes in the UK? Everybody does, especially small business owners. Before you think about ways not to pay tax legally, stop—because that’s never going to happen. What is possible is to save tax legally in the UK, and the best way to do that is through a proper tax optimization strategy. Here are some ways you can reduce tax legally:
Register for VAT
If you haven’t registered for VAT and you make a lot of B2B businesses and purchases already, then you should register now! You could start to save at least 20 percent on your expenses when you have VAT.
Despite having more administrative tasks to do because you will need to file a VAT return every quarter, it will be worth it. Additionally, you can use software to make it easier for you to prepare VAT returns.
Register the Company in a Lower Tax-Paying Jurisdiction
Before you get excited, there are a few things to keep in mind when you register your business in a lower tax-paying jurisdiction. For one, you need to consider where the work is actually being done. Next, you need to consider corporate and personal taxes. In the case that you have a physical store, then you will need to pay tax to the jurisdiction where your store is.
If you operate online and don’t rely on a physical location to conduct business operations, you can register your company in a country with lower corporate taxes. If you plan to do this, which is possible, it’s best you speak to our reliable accountant to discuss with you all the details.
Have a Competent Accountant
Speaking of an accountant, you need to hire a competent one if you want to be able to save more money on taxes for your small business. Many small business owners are hesitant to hire an accountant because they feel like they can’t afford to have another staff member on board. However, you can have an accountant alone and still be confident that your business will run.
Remember, the moment you get into business and it’s already running, you need a professional to take care of your finances; otherwise, you could easily get into a cash flow problem that is very common for business startups.
An accountant will also serve as your business partner; therefore, take the time to find a competent one that will suit your needs and someone you can really work with for a long time.
It’s possible to save on taxes for your small business in the UK today. It’s all a matter of having the right person helping you out. That’s why having an accountant is crucial not only to save on taxes but also to your business’s success.
The good news is, you won’t have a difficult time finding an accountant in the UK today as there are so many to choose from. However, since there are so many available, deciding on the perfect one might be quite challenging. For small business owners, you need to find a reliable and affordable one.